Financial Results for the Second Quarter Ended April 30, 2021
[Japan GAAP] (Consolidated)
Date:

June 9, 2021

Company Name and Code:

Tomoe Engineering Co., Ltd. and Subsidiaries - 6309
(URL: http://www.tomo-e.co.jp/index_e.html)

Stock exchange listing:

1st Section, Tokyo Stock Exchange

Head Office:5-15, Kitashinagawa 5-chome, Shinagawa-ku, Tokyo, Japan

President:

Hitoshi Yamamoto

Investor Relations Contacts:

Toshiaki Yakura, Director, General Manager of Accounting Division, Tel: (03) 3442-5127

Date to report Quarterly Consolidated Financial Statement: June 14, 2021
Date for Dividend Payment:

July 12, 2021

Preparation of Supplementary Explanatory Materials for Quarterly Operating Results: Yes
Briefing Session for Quarterly Operating Results: Yes (For analysts and institutional investors)* Any fractional sums less than one million (or one thousand) yen are disregarded
1. Consolidated Financial Data for the Second Quarter Ended April 30, 2021
(1) Results of Operation (Consolidated)

Quarter Ended April 30, 2021
Quarter Ended April 30, 2020

(Percent: Change from the same quarter of the previous year)
Net Sales
Operating Income
Ordinary Income
Millions ofMillions ofMillions of
Yen
Percent
Yen
Percent
Yen
Percent
23,048
15.6
1,934
38.6
1,958
40.9
19,933
-10.0
1,395
-17.9
1,390
-18.8

Quarter Ended April 30, 2021
Quarter Ended April 30, 2020

Net Income Attributable to
Owners of the Parent
Millions of
Yen
Percent
1,458
60.4
909
-21.0

Net Income per Share

Fully Diluted Quarterly
Net Income per ShareYen
146.17
91.14

Yen
-

(Note) Comprehensive income
Second Quarter ended April 30, 2021: 1,661 million yen (134.9%)

Second Quarter ended April 30, 2020: 707 million yen (-36.4%)(2) Financial Condition (Consolidated)

Quarter Ended April 30, 2021
Year Ended October 31, 2020

Total Assets (A)(Millions of Yen)
41,09938,438Net Assets (B)(Millions of Yen)
31,08529,668Net Assets Ratio(B) / (A) (Percent)
75.6
77.2

(Reference) Net assets
Second Quarter ended April 30, 2021: 31,085 million yen

Year Ended October 31, 2020: 29,668 million yen

2. Dividend Status(Record Date)
Year Ended October 31, 2020
Year Ending October 31, 2021
Year Ending October 31, 2021
(Prospect)First
Quarter-Interim
Term
23.50
25.00

Annual Dividend (Yen)Third
End ofQuarter
Fiscal Year
24.50
-

25.00

Annual48.00
50.00

(Note) Revisions since the most recently released dividend projection: None
3. Forecast for Earnings for the Year Ending October 31, 2021 (Consolidated)(Percent change from the previous Full Business Year)Net Sales
Operating Income
Ordinary Income(Millions of Yen) (Percent) (Millions of Yen) (Percent) (Millions of Yen) (Percent)
Full Business Year
43,700
11.4
2,360
4.4
2,380
3.7
Net Income Attributable to Net Income per ShareOwners of the Parent(Millions of Yen) (Percent)
Yen
Full Business Year
1,770
15.5
177.39(Note) Revisions since the most recently released dividend projection: None
Notes(1) Significant changes in subsidiaries during this period (changes in specific subsidiaries involving changes in thescope of consolidation): None
Number of new subsidiaries: __(Company names):
Number of eliminated subsidiaries: _1_(Company names): Tomoe Engineering (Shanghai) Co., Ltd.
(2) Adoption of the specific accounting method to create quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates, and retrospective restatements.
1) Change in accounting policies due to revision of accounting standard: None
2) Other changes than the above 1): None
3) Change in accounting estimates: None
4) Retrospective restatements: None
(4) Number of outstanding shares (Common stock)1) Number of outstanding shares as of quarter-end and year-end (including treasury stocks)
At April 30, 2021: 10,533,200 shares

At October 31, 2020: 10,533,200 shares

2) Number of treasury stocks as of quarter-end and year-end
At April 30, 2021: 554,911 shares

At October 31, 2020: 554,861 shares

3) Number of average shares (accumulated quarterly total)
At April 30, 2021: 9,978,325 shares

At April 30, 2020: 9,978,339 shares*The quarterly earnings report is exempt from the quarterly review by certified public accountant or audit firm.
*Explanations for appropriate use of the earnings forecast and other special instructions
The forward-looking statements such as a forecast of our financial results described herein are based on theinformation currently available to us and certain assumptions that we believe are reasonable. Actual results could differ
materially due to various factors.
Please refer to the Financial Results for the Quarter (Attachments) on page 4, (3) [Analysis of Future Forecast on
Quarterly Consolidated Earnings Forecast] of 1. [Qualitative Information on Quarterly Consolidated Operating
Results] for the operating results forecast.

Table of Contents (Supporting Data)

1. Qualitative Information on Quarterly Consolidated Operating Results....................................................2(1) Analysis of Operating Results................................................................................................................................2(2) Analysis of Financial Condition..............................................................................................................................3(3) Analysis of Future Forecast on Quarterly Consolidated Earnings Forecast.......................................................4
2. Quarterly Consolidated Financial Statements and Notes.................................................................................................5(1) Quarterly Consolidated Balance Sheet....................................................................................................5(2) Quarterly Consolidated Statement of Income & Quarterly Consolidated Statement of Comprehensive
Income......................................................................................................................................6
Quarterly Consolidated Statement of Income..............................................................................................6
Quarterly Consolidated Statement of Comprehensive Income.....................................................................7(3) Quarterly Consolidated Statement of Cash Flows..............................................................................................8(4) Notes on Quarterly Consolidated Financial Statements.....................................................................................10(Note for premise of going concern)....................................................................................................10(Notes for significant changes in shareholder’s equity)......................................................................................10(Segment information)....................................................................................................10

1

1. Qualitative Information on Quarterly Consolidated Operating Results(1) Analysis of Operating Results
During the second quarter consolidated period under review, Japan’s economy contracted despite an initially solid start.
Although the domestic and international economies both enjoyed a rapid recovery from the coronavirus pandemic, andexports in recent months have maintained a steady pace, year-to-date performance reflected decreases in personal
consumption and capital investment that were prompted by declarations of a state of emergency in several regions ofJapan. Overseas, China’s economy continued to perform well, and the US economy remained brisk, but Europe’s
economic downturn continues.
Given these circumstances, net sales for the Tomoe Engineering Group for the consolidated second quarter
increased 15.6% from the same period last year to 23,048 million yen because of increased sales in both the
Machinery & Equipment Business and Chemical Products Business. From an earnings aspect, operating income
was 1,934 million yen, 38.6% up from the same period last year because of higher income in both the Machinery &Equipment Business and Chemical Products Business, while ordinary income came to 1,958 million yen, 40.9% up
from the same period last year. Net income attributable to owners of the parent was 1,458 million yen, 60.4% up
from the same period last year, mainly reflecting a gain on sale of a consolidated subsidiary in China.
Operating results by segment were as follows.
(Machinery & Equipment Business)
In the Machinery & Equipment Business, consolidated net sales for the second quarter period were 7,443 million yen,
36.8% up from the same period last year. Despite sluggish growth in net sales of machinery for domestic public sector
demand, and machinery, equipment and construction works for domestic private sector demand, net sales of machineryfor overseas markets, particularly for China, and components and repair services for all fields, in addition to construction
works for domestic public sector demand based on receipt of orders for large-scale projects rose higher.
(Millions of Yen)
Productclassification

Machinery

Equipment andconstruction
works

Components
and repair
services

TOTAL

April, 2021

284

973

2,078

3,336

April, 2020

394

801

1,776

2,972

Difference

-109

172

301

363

April, 2021

291

0

1,010

1,301

April, 2020

398

120

944

1,464

Difference

-107

-120

65

-162

April, 2021

1,499

0

1,306

2,806

Overseas

April, 2020

135

0

868

1,004

markets

Difference

1,363

0

437

1,801

April, 2021

2,074

974

4,394

7,443

April, 2020

929

922

3,590

5,441

Difference

1,145

51

804

2,001

Public sector

Private sector

TOTAL

With respect to earnings, operating income was 915 million yen, 51.5% up from the same period one year earlier,reflecting higher gross-profit margin in the field of components and repair services which had high margins.

2

(Chemical Products Business)
In the Chemical Products Business, net sales clearly continued to recover centered on the motor vehicles sector which
was affected severely by the coronavirus pandemic during the second half of last year. On the other hand, net salesof materials for motor vehicles in the industrial materials and mineral products sector, materials and additives for paintand ink applications in the fine chemical products sector, and materials for semiconductor manufacturing devices in theelectronic materials sector all increased. As a result, consolidated net sales for the quarter were 15,604 million yen,
7.7% up from the same period one year ago.
(Millions of Yen)
April, 2020

April, 2021

Difference

Synthetic resin sector

3,529

3,977

447

Industrial materials and mineral

4,209

4,486

276

Chemical products sector

3,144

3,314

170

Advanced materials sector

1,603

1,727

123

Electronic materials sector

1,870

1,964

93

133

134

0

14,491

15,604

1,112

products sector

Other products (foreign liquor)
Total

With respect to earnings, operating income was 1,019 million yen, 28.8% up from the same period of the prior year,
reflecting higher gross-profit margin in the field of industrial materials sector and chemical products sector which had
high margins.
(2) Analysis of Financial Condition[1] Assets, Liabilities, and Net Assets
Total assets as of the end of the consolidated second quarter under review were 41,099 million yen, increased by
2,661 million yen from the end of the previous consolidated fiscal year. This mainly reflected a decrease in work inprocess, and notes and accounts receivable–trade, and an increase in cash and deposits, and electronically recordedmonetary claims.
Liabilities were 10,014 million yen, increased by 1,244 million yen from the end of the previous consolidated fiscal year,
mainly because of an increase in notes and accounts payable-trade, and income taxes payable, despite a decreasein provision for bonuses, and electronically recorded monetary debt.
Net assets stood at 31,085 million yen, increased by 1,417 million from the end of the previous consolidated fiscal year.
This mainly reflected an increase in retained earnings recorded under quarterly net income attributable to owners of
the parent.
As a result of the above changes, the equity ratio at the end of the consolidated second quarter under review
stood at 75.6%, decreased by 1.6 point from 77.2% at the end of the previous consolidated fiscal year.

3[2] Cash Flow Status
Cash and cash equivalents (“cash”) as of the end of the consolidated second quarter under review decreased by 1,123
million yen from the end of the previous consolidated fiscal year to 10,733 million yen, despite positive cash flow
provided by operating activities, reflecting expenditures for both investment and financing activities. The status ofeach consolidated cash flow and their factors during the second quarter are as follows:(Net Cash Provided by (Used in) Operating Activities)
Net cash provided by operating activities during the consolidated second quarter under review totaled 3,186 million
yen. This mainly reflected an increase in income before income taxes by 2,045 million yen, and notes and accounts
payable-trade by 622 million yen, and a decrease of inventory by 619 million yen, despite a decrease in provision forbonuses by 261 million yen, and payment of income taxes by 173 million yen. Net cash provided by operating
activities increased by 3,029 million yen compared to 157 million yen provided for the same consolidated quarteryear-to-date period of the previous year.
(Net Cash Provided by (Used in) Investing Activities)
Net cash used by investing activities during the consolidated second quarter under review reflected expenditures
totaling 4,127 million yen. This reflected a difference of 4,000 million yen between deposits and disbursements totime deposits. Net cash used by investing activities decreased by 193 million yen compared to 4,320 million yen
used for the same consolidated quarter year-to-date period of the previous year.
(Net Cash Provided by (Used in) Financing Activities)
The decrease in cash as a result of financing activities during the consolidated second quarter under review came to
244 million yen. This reflected the payment of cash dividends of 244 million yen. Net cash used in investing
activities increased by 10 million yen compared to 234 million yen used for the same consolidated quarter year-todate period of the previous year.
(3) Analysis of Future Forecast on Quarterly Consolidated Earnings Forecast
There are no revisions to the consolidated earnings forecast figures for the fiscal year ending October 31, 2021 thatwere announced in the “Notice on changes in earnings forecast” released on June 4, 2021.

42. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet (Second Quarter)(Thousands of Yen)
AssetsEnd of Previous YearEnd of Second Quarter(October. 31, 2020)(April 30, 2021)

Current Assets
Cash and Deposits

11,857,553

14,733,893

Notes and Accounts Receivable-Trade

10,400,639

9,774,755

Electronically Recorded Monetary Claims

2,131,545

2,946,899

Merchandise and Finished Goods

2,605,708

3,353,462

Work in Process

1,684,070

741,794

Raw Materials and Supplies

1,066,944

717,891

Others

253,335

238,560

Allowance for Doubtful Accounts
Total Current Assets-60,767-63,552

29,939,029

32,443,704

4,722,504

4,747,233

Accumulated Depreciation-2,026,932-2,108,350

Buildings and Structures, Net

2,695,571

2,638,882

Machinery, Equipment and Vehicles

3,826,069

3,927,686-3,360,809-3,476,791

465,260

450,894

1,930,580

1,930,902－

85,5001,071,431

1,080,718

Accumulated Depreciation-959,930-966,618

Others, Net

111,500

114,100

5,202,912

5,220,279

128,516

101,628

Investment Securities

1,227,085

1,365,966

Guarantee Deposits

398,405

401,186

1,473,503

1,499,713

Deferred Tax Assets

12,143

10,193

Others

79,027

79,258

Allowance for Doubtful Accounts-22,291-22,071

Total Investments and Other Assets

3,167,873

3,334,245

Total Noncurrent Assets

8,499,302

8,656,154

Total Assets

38,438,331

41,099,859

Noncurrent Assets
Property, Plant and Equipment
Buildings and Structures

Accumulated Depreciation
Machinery, Equipment and Vehicles, Net
Land
Construction in progress
OthersTotal Property, Plant and Equipment
Intangible Assets
Investments and Other Assets

Net Defined Benefit Assets5

(Thousands of Yen)
End of Previous YearEnd of Second Quarter(October. 31, 2020)(April 30, 2021)

Liabilities and Net Assets
Liabilities
Current Liabilities
Notes and Accounts Payable-Trade3,004,198

3,883,874

Electronically Recorded Monetary Debt

2,150,419

1,967,015

Accounts Payable-Others

621,692

653,375

Income Taxes Payable

179,968

600,119

Advances Received

201,993419,945

Provision for Bonuses

1,231,975

971,167

Provision for Directors' Bonuses

61,55535,178

Allowance for Product Warranty

236,423

332,033

Others397,235

437,090

8,085,462

9,299,799

Total Current Liabilities
Noncurrent Liabilities
Provision for Directors' Retirement Benefits

5,460

5,460

Net Defined Benefit Liabilities

71,21964,011

Deferred Tax Liabilities

607,445644,804

Total Noncurrent Liabilities

684,124714,275

Total Liabilities

8,769,587

10,014,075

Capital Stock

1,061,210

1,061,210

Capital Surplus

1,483,410

1,483,410

Retained Earnings

27,107,252

28,321,355

Treasury Stock-363,977-364,081

Total Shareholders’ Equity

29,287,895

30,501,894

Accumulated Other Comprehensive Income
Valuation Difference on Available-for-Sale
Securities
Deferred Gains or Losses on Hedges

307,456

416,135-1,5662,398

Foreign Currency Translation Adjustment

92,854

189,676

Total Adjustment on Net Defined Benefit-17,896-24,321

Total Accumulated Other Comprehensive Income

380,848

583,889

Total Net Assets

29,668,743

31,085,783

Total Liabilities and Net Assets

38,438,331

41,099,859

Net Assets
Shareholders’ Equity5(2) Quarterly Consolidated Statement of Income & Quarterly Consolidated Statement of Comprehensive
IncomeQuarterly Consolidated Statement of Income (Second Quarter)(Thousands of Yen)
Second Quarter Ended
April 30, 2020

Second Quarter Ended
April 30, 2021

Net Sales

19,933,464

23,048,240

Cost of Sales

15,168,940

17,519,565

4,764,524

5,528,674

3,368,708

3,594,090

1,395,816

1,934,583

Interest Income

1,200

1,532

Dividends Income

14,522

13,861

Rent Income

3,585

3,658

－

4,736

10,896

14,74230,20438,531

Interest Expenses

5,066

1,336

Commission Paid

7,495

7,487

Sales Discount

3,219

3,237

Foreign Exchange Loss

15,848－Others

3,873

2,334

Total Non-Operating Expenses

35,503

14,396

Ordinary Income

1,390,517

1,958,718

Gain on Sale of Investment Securities－

23,927

Gain on Liquidation of Affiliated Company－

62,996－86,924

1,921

－

1,921

－

1,388,596

2,045,642

Income Taxes-Current

270,313579,427

Income Taxes-Deferred

208,880

7,642

Total Income Taxes

479,193

587,070

Net Income or Net Loss (-)

909,402

1,458,572

909,402

1,458,572

Gross Profit
Selling, General and Administrative Expenses
Operating Income
Non-Operating Income

Foreign Exchange Gain
OthersTotal Non-Operating Income
Non-Operating Expenses

Extraordinary Profits

Total Extraordinary Profits
Extraordinary Losses
Loss on Evaluation of Investment Securities
Total Extraordinary Losses
Income before Income Taxes and Minority Interests

Net Income or Net Loss (-)
Attributable to Owners of the Parent

6

Quarterly Consolidated Statement of Comprehensive Income (Second Quarter)(Thousands of Yen)
Second Quarter Ended

Second Quarter Ended

April 30, 2020

April 30, 2021

909,402

1,458,572-204,806

108,679

Deferred Gains or Losses (-) on Hedges-4,195

3,965

Foreign Currency Translation Adjustment

16,08396,821Net Defined Benefit-9,168-6,424-202,086

203,041

707,316

1,661,613

707,316

1,661,613

Net Income
Other Comprehensive Income
Valuation Difference on Available-for-sale Securities

Total Other Comprehensive Income
Comprehensive Income(Breakdown)Comprehensive Income Attributable to Owners of the
Parent7

(3) Quarterly Consolidated Statement of Cash Flows(Thousands of Yen)
Second Quarter Ended

Second Quarter Ended

April 30, 2020

April 30, 2021

Net Cash Provided by (Used in) Operating Activities
Income before Income Taxes

1,388,596

2,045,642

Depreciation and Amortization

169,817

193,093

Increase (Decrease) in Provision for Bonuses(330,778)(261,230)

Increase (Decrease) in Provision for Directors' Bonuses(45,049)(26,377)

Increase (Decrease) in Allowance for Product Warranty(26,492)

95,609

Increase (Decrease) in Net Defined Benefit Liability

1,146(7,207)

Decrease (Increase ) in Net Defined Benefit Asset(22,525)(26,209)

Increase (Decrease) in Allowance for Doubtful Accounts(1,334)(211)

Interests and Dividends Income(15,723)(15,393)

Interest Expenses

5,066

1,336

Foreign Exchange Loss (Gain)

13,649(31,568)－(23,927)

Loss on Valuation in Investment Securities (Gain)

1,921

－

Loss on Liquidation of Affiliated Company (Gain)－(62,996)(73,958)(74,054)

Decrease (Increase) in Inventories(737,074)

619,723

Increase (Decrease) in Notes and Accounts Payable-Trade(74,006)

622,742

Increase (Decrease) in Accounts Payable-Others(135,213)

42,330

Increase (Decrease) in Advances Received

332,283

216,355

Others, Net

182,064

39,060632,387

3,346,716

Interests and Dividends Income Received

15,806

15,397

Interest Expenses Paid

(5,073)(1,343)

Income Taxes Returned (Paid)(486,088)(173,997)

Net Cash Provided by (Used in) Operating Activities

157,0313,186,771

Loss on Sale of Investment Securities (Gain)

Decrease (Increase) in Notes and Accounts ReceivableTrade

Sub Total8

(Thousands of Yen)
Second Quarter Ended

Second Quarter Ended

April 30, 2020

April 30, 2021

Net Cash Provided by (Used in) Investment Activities
Disbursement to Time Deposits(8,000,000)(8,000,000)

Withdrawal from Time Deposits

4,000,000

4,000,000

Purchase of Property, Plant and Equipment(237,462)(169,134)

－

9,265

Purchase of Intangible Fixed Assets(23,436)(4,198)Purchase of Investment Securities(10,786)(10,448)－

47,889Payments of Loans Receivable

(920)

(720)

Collection of Loans Receivable

2,015

760

Guarantee Deposits (Increase)(48,554)(598)

Others, Net(1,692)141(4,320,837)(4,127,042)

－

(104)

Cash Dividends Paid

(234,490)(244,469)

Net Cash Provided by (Used in) Financing Activities(234,490)(244,573)

3,124

61,184Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period(4,395,172)(1,123,660)

12,147,981

11,857,553

Cash and Cash Equivalents at End of This Quarter

7,752,808

10,733,893

Proceeds from Sale of Property, Plant and Equipment

Proceeds from Sale of Investment Securities

Net Cash Provided by (Used in) Investment Activities
Net Cash Provided by (Used in) Financing Activities
Purchase of Treasury Stock

Cash and Cash Equivalents
Effect of Exchange Rate Change on Cash and Cash
Equivalents9(4) Notes on Quarterly Consolidated Financial Statements(Note for premise of going concern)
There are no pertinent matters to report.
(Notes for significant changes in shareholder’s equity)
There are no pertinent matters to report.
(Segment information, etc.)[Segment information]
Second Quarter Ended April 30, 2020
Information Pertaining to the Amount of Net Sales, Profit or Loss of Each Reporting Segment(Thousands of Yen)
Reported Segment
Machinery & Equipment
Business

Chemical Products
Business

5,441,781

Total

Grand Total

14,491,683

19,933,464

19,933,464

-

-

-

-

Total

5,441,781

14,491,683

19,933,464

19,933,464

Segment Profit

604,144791,672

1,395,816

1,395,816

Net Sales
Net Sales to UnaffiliatedCustomers
Internal Net Sales among
Segments or AmountTransferred(Note) The total amount of segment profit is identical to the operating income reported on the Quarterly Consolidated Statements of Income.

Second Quarter Ended April 30, 2021
Information Pertaining to the Amount of Net Sales, Profit or Loss of Each Reporting Segment(Thousands of Yen)
Reported Segment
Machinery & Equipment
Business

Chemical Products
Business

7,443,720

Total

Grand Total

15,604,519

23,048,240

23,048,240

-

-

-

-

Total

7,443,720

15,604,519

23,048,240

23,048,240

Segment Profit

915,126

1,019,456

1,934,583

1,934,583

Net Sales
Net Sales to UnaffiliatedCustomers
Internal Net Sales among
Segments or AmountTransferred(Note) The total amount of segment profit is identical to the operating income reported on the Quarterly Consolidated Statements of Income.

10